Daewoo Heavy Industries America Corporation
Machine Tool Division

Daewoo Heavy Industries America Corp. is pleased to announce that Doosan Ltd., known for power generation, was selected from seven bidders as it promised to pay $1.6 billion for stock shares being offered by KAMCO Korean Asset Management Corporation) and KDB (Korean Development Bank). The purchase of Daewoo Heavy stock gives Doosan, a major player in the construction, forklift, defense, and engine industries, where Doosan has had no presence and where Daewoo owns large market shares. Also included in the stock purchase is Daewoo Heavy Industries, Machine Tool Division where Daewoo owns over 7% of the world market to Doosan’s less than 1%. Doosan has one month to complete the transaction with KAMCO or discussions will begin with Hyosung Corp., the second highest bidder.

Doosan has announced that considering the diversification, distribution, and success of the Daewoo product line Daewoo Heavy Industries would remain as a separate entity for at least the next three years.